miners - All posts tagged miners

Talks between Barrick Gold Corp. and Newmont Mining Corp. over a deal that would have combined the world’s two largest gold producers may have broken down, but that doesn’t necessarily mark an end to their potential merger or consolidation among metals miners struggling to cope with challenges in the sector.

Bloomberg

gold bars

“The mining industry is facing a three-pronged problem of lower gold prices
, higher production costs and a relatively empty pipeline of new projects in developments,” said Brien Lundin, editor of the Gold Newsletter. “to counter this, companies will increasingly seek to bolster their production at the expense of their competitors through acquisitions, and to cut overhead through mergers.”

Barrick
and Newmont Mining
were in advanced talks to merge but the talks broke down over the past few days, The Wall Street Journal reported Friday, citing people familiar with the matter. None of the companies involved have issued any statements in regard to the issue.

The \”mega-merger concept came about in an attempt to find true cost savings and economies of scale — both at the corporate and operational level — for Barrick and Newmont,” said Jeffrey Wright, managing director at H.C. Wainwright.

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